Filing bankruptcy may allow you to keep your assets thanks to rules that exempt assets in bankruptcy. Before you decide if you should liquidate assets as a possible solution for eliminating your debt, speaking with a bankruptcy attorney may help you find answers.
Whether you’re an individual or a business, sitting in debt can be stressful. Creditors may convince you that liquidating your assets is a possible solution for eliminating your debt. However, liquidating your assets may cost you everything and leave you with very little. Bankruptcy may allow you to keep some or all of the assets that you own while dealing with your debt at the same time.
Having an experienced bankruptcy lawyer on your side may make a difference in your case. Attorney John E. Dunlap has worked in many bankruptcy cases and may be able to help relieve the burden. Call today for a free 30 minute session regarding your situation.
Is selling assets to pay off debt the right decision? ?
Selling assets before bankruptcy may feel like a quick fix to your financial burdens. When you are faced with debt, the looming feeling of it hanging over your head may make you wonder if liquidating your assets is a good idea or not.
Liquidation means that creditors will sell your assets for cash as a way to pay back what you owe them. When you pay back debts that you owe, you often pay the interest first before the actual debt amount is paid on. If you decide to liquidate assets to pay debts, you may not even pay the actual debt until the interest is paid off. As a result, you may risk losing your house and retirement without paying down all of your debts and may make your financial burden heavier.
Although selling assets seems like a solution to solve debt problems quickly, you may end up losing your assets while still being in debt. If you’re considering selling any of the following assets to resolve debts, bankruptcy may be a way for you to keep your assets and become debt-free:
- Retirement Accounts
- Raw material
- Financial investments and more
Before you decide to sell property to settle debts, talking with a qualified attorney may help you better explore and understand solutions to debt.
Attorney John Dunlap has helped thousands of people who were struggling with debt keep assets thanks to bankruptcy. Call today for your free strategy session before deciding to sell off assets to settle debts to learn about your financial options.
What assets are protected in bankruptcy?
You can keep certain exempt assets in bankruptcy, depending on your individual financial situation and what kind of bankruptcy you decide to file. You may be able to keep more assets through bankruptcy rather than going through the process of liquidating your assets through your creditors.
There are different ways assets can be exempted in bankruptcy, including state exemptions rules and federal exemption rules. Assets you can keep include things like your house, car, personal property, and financial assets, depending on your individual situation and bankruptcy filing strategy.
What assets are exempt in bankruptcy depends on whether you elect to use federal or state exemptions. While there are federal exemptions for bankruptcy, states are allowed to set their own rules of what is exempted from bankruptcy.
Assets you may be able to protect by filing for bankruptcy in Tennessee include some common Tennessee bankruptcy exemptions:
- Personal Property
- Health Savings Account
- Burial Plots
- Retirement Plans
- Disability Benefits
- Tools of Trade
- Alimony and Child Support
- Life Insurance
- Education Trust Funds
While this list isn’t extensive, it includes some of the most common exemptions for bankruptcy assets in Tennessee. Those filing for bankruptcy can also choose from federal exemptions, which are different from those set by the State of Tennessee, and may prove to be a better solution to protect assets during bankruptcy.
Thinking about filing for bankruptcy and want to keep your assets? There are a number of different strategies those filing for bankruptcy can use to keep their assets. Talking with an experienced bankruptcy attorney may help you understand your options to resolve debt and keep your property.
Before you decide to file for bankruptcy or sell assets to pay debts, you can take advantage of a free strategy session with Attorney John Dunlap to learn more about your options to settle debts. Call today to schedule your free 30 minute session.
What happens to your assets when you file for bankruptcy?
If you are considering filing for bankruptcy, one thing you might be asking is whether or not you will lose your assets after you file. Depending on your case, you may be able to keep some or all of your assets.
When you file for a Chapter 7 or Chapter 13 bankruptcy you instantly qualify for an automatic stay, which stops creditors from taking your assets during the bankruptcy period. This may help those who are afraid of foreclosure or repossession keep their assets for a period of time which the bankruptcy is in progress.
In Chapter 7, individuals may be given the option to keep their assets. Additionally, individuals may be able to keep their assets and have some of their debts discharged if the judge decides to do so. You may also use bankruptcy exemptions when filing a Chapter 7 bankruptcy.
Much like Chapter 7, Chapter 13 bankruptcy also offers an automatic stay that stops creditors from taking your assets but also creates the repayment plan that allows you to make payments on the debts that you owe over time. You may be able to pay off some of all of the debt owed without having to lose your assets in the process.
If you want to know which assets you can keep in Chapter 7 or Chapter 13 bankruptcy filings, speaking with an experienced bankruptcy attorney may help you determine which bankruptcy strategy is right for your unique situation.
Attorney John Dunlap has helped thousands of people keep their assets with bankruptcy filings and offers free strategy sessions. Call today for your free 30 minute consultation.
What is bankruptcy liquidation of assets?
Sometimes in bankruptcy, some property may be sold to pay off debts and is called the liquidation of assets. Working with an attorney who has experience working with clients to find a strategy to keep important property and assets while getting rid of debts with other assets may help you resolve debt while keeping some of your assets.
The process of liquidating assets can be difficult depending on the situation and circumstances of the company or the individual. The process that determines which assets are liquidated includes analyzing your assets, how many you have, what you owe, and how much creditors want from you, as well as exemption rules about what you’re allowed to keep in bankruptcy.
Typically, liquidating your assets includes gathering a list of your assets and figuring out how much they are worth before they are sold. Depending on your situation, your assets may be put up for public auction. Working with an attorney to help you through this process can help to protect your rights in a bankruptcy filing and may help you get the best outcome with different strategies for bankruptcy filing.
John Dunlap is dedicated to helping his clients find the best solutions for them. Don’t lose everything through asset liquidation. Call us today for a free 30 minute session to see how we may be able to help.